DGFT Provides Relief Under EPCG Scheme for the Year 2023-24

The Directorate General of Foreign Trade (DGFT) has provided relief in Average Export Obligation Under EPCG Scheme for the Year 2023-24 via issuing a Circular.

The Circular Read as Follows:

The para 5.17 of the HBP of the FTP, 2023 envisages that to provide relief to exporters of those sectors where total exports in that sector/product group has declined by more than 5% as compared to the previous year, the Average Export Obligation (EO) for the year may be reduced proportionate to reduction in exports of that particular sector/product group during the relevant year as against the preceding year. This implies that the sector/product group that witnessed such decline in 2023-24 as compared to 2022-23 would be entitled for such relief.

A list of product groups showing the percentage decline in exports during 2023-24 as compared to 2022-23 is Annexed.

All Regional Authorities are instructed to re-fix the Annual Average EO for EPCG Authorisations for the financial year 2023-24 accordingly. The reduction, if any, in the EO should be * properly endorsed in the licensing file of the Office of Regional Authority, as well as on the amendment sheet to be issued to the EPCG Authorisation holder.

Regional Offices while considering requests of discharge of EO will ensure that in case of shortfall in EO fulfilment, Policy Circulars issued earlier in terms of Para 5.11.2 of HBP 2009-14, Para 5.19 of HBP of FTP 2015-20 and Para 5.17 of FTP, 2023 are also considered before issuance of demand notice, EODC etc. This stipulation should be part of Check-Sheet for the purpose of EODC.

This issues with the approval of Director General of Foreign Trade.

For Official Circular Download PDF Given Below: